Placing Stops on Strong Stocks.

Shishir Deshpande asks this question:

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What should trader in individual stock do when index chart breaks down but stock chart holds ? Is the right strategy to exit with index stoploss or use the stoploss for that stock acording stock chart?(e.g. for say balrampur chini stock dropped only 2.5% where as index fall was 7% on wednesday).

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When you trade a stock you should follow the levels identified on the stock chart. Thus, follow the Balrampur chart for deciding on an exit. There is an exception. If you have developed a strategy that uses the index to exit then you follow the index. You need to decide what exit rules to follow when you begin the trade. Do not change the rules during the course of the trade.